Volume 3, Issue 21

1
May 22, 2006
Volume 3, Issue 21
CEO Message
Company, Family Must Grow Together
I hope that you will have a happy and healthy
home. Thus, I have long emphasized that our home
and the company should be unified to this end.
The unity of home and company means that they
should become partners that understand and
encourage each other. Through this philosophy, I
intend that LG Electronics will implement
family-friendly management so that the
companys development will lead to your homes
happiness.
CEO LG Electronics
From the May 2006 CEO Message
LGE Pride
LGE LCD TVs to Adorn Worlds Top Hotel
In a further show of brand power in the Middle
East, LG Electronics announced on May 16 that it
will supply the worlds top hotel, Burj Al Arab,
with some 800 LCD TVs. The hotel, a tourist
attraction in Dubai and the worlds first 7-star
hotel, will install 55-inch TVs in meeting rooms,
42-inch TVs in the living rooms of suites, and 32
or 37 inch TVs in each hotel room. LGE will
finish replacing the TVs in the Burj Al Arab by
the end of next month, said one LGE
representative. .
LGE Agrees to Sponsor Top Golf Event in U.S.
On May 10, LG Electronics signed a three-year
agreement to become the title sponsor of the
Skins Game, which will be played Nov. 25-26 in
California. With a 1 million purse, the Skins
Game is one of the richest two-day events in
golf. LG Electronics is thrilled to become the
title sponsor of one of the most-watched golf
telecasts of the year. LG Electronics has been
able to strengthen its premium brand image in the
North American market by sponsoring top
sports events here, said Michael Ahn, President
of LG Electronics North American Headquarters.
Established in 1983, the event pits the worlds
top four golfers against one another on 18 holes
for two days for a US1 million purse. This
year's Skins Game will be televised live on
national TV by ABC.
Click to Read Full Story
LGEs Blue Ocean
Hair Salon Achieves Fast Growth Through Blue Ocean
I
f we can construct Blue Ocean Business Models,
then we will be able to attain the Fast Growth
required to reach the Global Top 3 by 2010.
We can find an example of this by looking at a
hair salon. The company which holds the Guinness
World Record for the most franchises in the
shortest amount of time is a hair salon in Korea
called the Blue Club that caters to men. The
salon designed its business model on a simple
concept low-cost, quality haircuts for men. This
model worked because salons did not need
expensive equipment for complicated hair styles,
but just offered the essential service that most
men wanted. The original price set in 1998,
US5, has not changed since then, despite an
industry that has raised prices over 50 during
the same time. As a result of this
value-innovating, Blue
Ocean Business Model, the chain grew faster than
any other franchise in history, achieving the
Guinness World Record in 2001 when it reached 250
franchises after just 19 months of operation.
Currently the chain continues to dominate that
niche with more than 860 stores. We too can
follow the example of Blue Club if we find and
create Blue Ocean Business Models in LGE. .
Change Challenge
Changing World Requires Strong Customer Focus
T
o make LGE a Great Company with Great People, we
need to always focus our work on customers and
what they need. Every department
can be more customer-oriented, but departments
which deal directly with the customer must
particularly emphasize this.. Thus the Customer
Service Operation in Korea recently extended
after-sale product service to weekend hours,
making LG Electronics the first big company in
Korea to do so. Previously, customers who called
for service on the weekends were out of luck,
only getting a message to call back between
Monday and Friday. But now they not only get a
service operator, but a service technician will
also visit to fix products on site at the
customers home. The service was extended because
Korea now has more double-income families who
thus cannot receive service during the week. Our
Blue Ocean strategy is to make it so customers
cannot help but buy
our products because of the excellent customer
service we provide, including the weekends, said
S.Y. Lee, head of the Customer Service Operation.
The change has been extremely popular and
reflects the commitment of LG Electronics to
change for the better of the customer. And to top
it off, service technicians do not mind working
on the weekend as much because they then have the
option to take their weekend during the normal
work week.

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LGE WAY Knowledge Quiz
For 2006, which region for LGE had the highest
sales outside of Korea?
Published by LG Electronics / Corporate Culture
Group Please refer questions, comments, and
suggestions on content to lgeway_at_lge.com